Over fifty years, observers have become inured to troubling reports of Atlantic Canada's economic difficulties. Even the most jaundiced observer would recognize, however, that data for the last two years describes something different. The regional economy is not...
Equalization
Manitoba: Beware the Puffball Economy
The Manitoba and federal governments have recently disagreed on the population of the province, a dispute that could lessen the transfer payments Manitoba receives, overwhelmingly from taxpayers in other provinces. Manitoba Finance Minister Jennifer Howard feels...
Equalization payments do nobody any favours
Source: Barry Cooper, The Calgary Herald, 12 Nov 2013 Legislation governing Canada’s equalization program, which supports most intergovernmental transfers, is scheduled to expire next March. Bureaucrats have been negotiating over new terms for at least a year. In...
Evidence Suggests Windfall Government Revenue Worsens Corruption
A study published in this month’s American Economic Review demonstrates that increased federal transfers to municipalities in Brazil lead to increased corruption. While one can quibble over whether the effect is as strong in more developed countries, the results are precisely what should be expected, given the incentives facing politicians.
Featured News
Timeless Wisdom – The Politics of Successful Structural Reform
It’s a well-known pattern in public policy – profligate politicians damaging their economies with out-of-control spending, massive borrowing and higher taxes – inevitably leading to fiscal crisis, sharp declines in growth and ultimately rapidly falling currency value...
Canada’s National Hysteria in the 21st Century
Mass hysteria is the spontaneous manifestation of a particular behaviour by many people. There are numerous historical examples: Middle Age nuns at a convent in France spontaneously began to meow like cats; at another convent, nuns began biting one another. In...
There’s a Fairer — and Cheaper — Way to Even the Provinces’ Playing Field: Canada’s equalization program should stop turning a blind eye to important differences in provincial expenditures
Equalization payments are intended to give all provinces the financial means to provide roughly equivalent services to their residents. This principle is embedded in our Constitution. But it doesn’t always work out that way. In fact, some provinces receive more than they need. Some receive too little.
Wealth Shared Unfairly, Study says;: Ottawa suppressing parts of report that shows how Ontario and B.C. are being short-changed
Ottawa is suppressing key parts of a politically explosive federal report that reveals Ontario is being shortchanged by Canada’s national wealth-sharing scheme.
Chongqing, Bangalore and Canada: Reform will lead way to success
David MacKinnon discusses the benefits of rapid economic growth in developing countries like China and India, as well as the challenges facing Canada in an increasingly competitive global economic environment.
Reductions to Transfer Payments Possible
The Minister of Finance, Jim Flaherty, introduced yesterday the idea of pegging tranfer payments to economic growth. As a result, transfer payments could be reduced by a third five years from now, assuming current rate of growth.
What 18th-century Scotland and Saskatchewan Have In Common: The key is liberating individuals
A new book by David Seymour on Saskatchewan is reviewed where he argues the province could see a ‘golden age’ if it allowed decision making to be returned to the individual.
Revitalizing Manitoba (Updated): From Supplicant Society to Diversity and Dynamism
Special Frontier publication authored by Law Professor Bryan Schwartz discussing a variety of topics affecting Manitoba competitiveness, well-being and prosperity that present a practical roadmap towards a less politicized and more successful province.
Manitoba Real Spending Up 65%: Provincial Spending Increased 2.75 times Inflation Rate Between 1999 and 2010
Thanks to sharply rising transfer payments and provincial debt, spending per capita by the Province of Manitoba increased 65% between 1999 and 2010, 2.75 times the rate of inflation.
Balancing Act: Gradually Reducing The Size and Cost of Manitoba’s Public Sector
Ben Eisen and Jonathan Wensveen examine the cost of Manitoba’s relatively large public sector. By taking into account projected population growth, they argue that Manitoba can significantly reduce the size of its public sector in the medium-term without resorting to drastic cuts, by either freezing or making small, gradual reductions to government employment over the next decade.
David Henderson, Economist
David Henderson, the author of Canada’s Budget Triumph, was interviewed August 10, 2011 during a recent visit to Winnipeg.